For many people, talking about life insurance is a difficult subject. While it may be uncomfortable thinking about your death, it’s important to prepare for it. That’s where life insurance comes in. Life insurance helps you care for your loved ones as they deal with the aftermath of your passing. If your assets are left unprotected, that can make things even worse as your loved ones try to mourn and cope with the loss.
Types of Life Insurance for You to Consider
Term Life Insurance
Term life insurance is one of the most commonly used policies. You will receive coverage for a specified period. Generally, the terms of the coverage are somewhere between 10 and 30 years. You may also opt for a renewable policy if you only want coverage for a small period of time.
Whole Life Insurance
Whole life insurance covers you throughout your entire lifespan. As you pay your premiums, the policy will build cash value. You’ll also receive a guaranteed rate of return and your death benefit amount will remain stable.
Universal Life Insurance
Universal life insurance policies are unique because there isn’t much cash value in the policy. However, the death benefit is guaranteed, and the premiums are fixed. You have the option to choose the age when the death benefit is guaranteed.
Variable Life Insurance
Variable life insurance is tied to your assets. The cash value in the policy is based on your investments, such as bonds and mutual funds. The premiums in variable life policies are fixed. You also have a guaranteed death benefit, regardless of the market fluctuations. If you opt for variable universal life coverage, the premiums are adjustable. This policy is seen as riskier because while you will enjoy considerable gains if your investments succeed, there is also the possibility that the market crashes.
Understanding the Underwriting Process
Another variable to consider while you’re researching life insurance coverage is the underwriting process. Companies use the underwriting process to figure out the risks of insuring you. In most cases, you may be asked to take a medical exam. The policy may also factor in your hobbies and occupation.
While you may be in the prime of your life, it’s never too early to start planning for the future and researching life insurance. Unexpected events can happen at any time. Without life insurance, you risk leaving a large financial burden on your loved ones as they attempt to give you a proper send-off. Do you have additional questions about your life insurance coverage? If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California. Our dedicated team is eager to assist you with all your personal insurance needs today.
